Recurring market commentary on what's happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good Morning!
It was a tense weekend, which was kickstarted by ETH’s London fork on Thursday, August 5th.
Ethereum ETH (daily)
Ethereum (ETH) reached a level of $3,200, breaking the $2,850 resistance, and gaining more than 20% at the highest level. Before the weekend started, the spread between ETH/BTC also moved towards 0.073. Currently, the situation has relaxed a bit, and we are currently trading at a level of 0.067 – just below the important resistance level of 0.0685.
Bitcoin BTC (daily)
Bitcoin (BTC) saw a high of $45,000, and is trading roughly 3% lower now. The next few days will tell whether or not the BTC resistance of 42,100 will stay, or if we will go straight towards $50,000: a level where derivatives positions start to become relevant again.
The overall situation in the derivatives space has not changed a great deal; the funding rates and the futures premium has risen just a bit. In general, the market situation currently does not seem to be overstretched.
Regulation around the world is being discussed nearly daily. The Chairman of the SEC (U.S. Securities and Exchange Commission), Gary Gensler, wants to introduce legislation for cryptocurrency trading, and regulate the “wild west” (as he calls it) of cryptocurrency. Last Friday, the SEC charged crypto exchange executives for the first time over unregistered token sales. The two executives agreed to a cease and desist order and to return profits reaped by using decentralised finance (DeFi) technology.
Happy Trading!
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